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Why do banks get stuck on Iraq?
Posted 23/02/2012 07:37 PM
D. Peace Sumaisem *
Balance in the economy, the goal and the purpose sought by all significant than economists or policy makers or the men of politics and even researchers in the fields of science involved, and the only reminder we say that the economic balance includes several levels:
the balance in the market commodity and through the looking balance in production and consumption.
• balance in the financial markets are looking through investment and savings
• balance in the market for money through the relationship between money supply and demand
• balance in the labor market through the relationship between labor supply and demand for it
and then Atodh to balance the general economic and telescope macroeconomic policy Macro-Economic Policies
to be balanced on several axes, all of which combine to check later on the broader economic balance. This talk is in order to pick up the pieces, commenting on the suspension of the World Bank set out above, which cited the importance of public budgets and preparation area and create enough space and freedom of movement and requisite for the private sector in order to reach the goal of improving economic performance down to the goal of economic balance. Particular, and he stressed that this development should be in the non-oil sectors, with the focus on the oil sector in particular increases the rentier economy and its relation to this activity sector exclusively and make the Iraqi budget totally dependent on one source of funding and everyone knows what that impact on the economy and production processes Commodity of the Iraqi economy as well as the cash flow in Iraq. Hence the need to create opportunities for economic growth in other sectors to make the door open for the Iraqi economy to create a multiplicity of sources of funding for the Iraqi economy.
And banks round the core of the administration and facilitation of the joints of these economic processes are all but have it better for leadership and take the lead in order to stabilize the pillars of the private sector and strengthening its presence, particularly through the sector is promising and active private banks, which believes the researcher - and humbly too - that there is no investment without them and without the role of Chairman of the banks which we hope to take its role in the management of files, the economy and diagnosis of the exact files, investment and rebuild the Iraqi economy according to a new vision to see create a climate favorable for the transition from an environment-oriented economy central to the climate of the market economy to ensure that the recovery environment entry and growth of private sector's role in the economy Iraq.
based on the International Monetary Fund forecasts the GDP of Iraq will increase by 9.6 per cent this year and 12.6 per cent next year. In time will see many other nations in the Middle East and North Africa, a decline in economic growth rates in 2012 due to falling oil prices and global recession.
With the recent statements of officials in the international financial organizations on the reality and the future of the financial and banking sector in Iraq, following the interviews of some of those concerned in this regard with officials from the International Fund in Washington, escalated News existence of non-satisfaction of an international level of performance in the Iraqi market, financial and banking, including in particular,
is still typical Iraqi banking system hamper the growth prospects in Iraq, and here begins necessary to develop it in order to attract foreign investment and diversify the economy.
According to the latest report of the World Bank said seven state-owned banks dominate the banking system has 89 percent of bank deposits in the country through seven state banks still control the financial market in Iraq. Although these banks offer limited services and that most commercial banks in Iraq is still not working improper, but only work on commercial mediation, the most prominent car dealership and the conduct of currencies, especially selling the dollar against the Iraqi dinar!!!
. said Heidi Arpley Regional Director of the World Bank on the sidelines of the Fund IMF and World Bank in Washington «on Iraq as an economy that seems to Variety he had to provide jobs for millions of people. He also said that a country with huge potential and we need to help Iraq as a Tiger next in the region. »
said the World Bank »that the Iraqi government should order the balance sheets of banks and strengthen the supervision of the financial system and create conditions for competition from the private sector.
He said the bank «of to improve the balance of the economy there is a need to deepen the financial sector to support the growth of non-oil sector. »
Officials at the IMF and the World Bank that the financial sector of Iraq's restive was almost one of the barriers to economic growth, they said »that there is still a need for security and macroeconomic stability.
suffer fact Iraq's economic problems, several, and obstacles to banking, but most of these challenges impact and effect is the monopoly of government banks to work and banking activity to support and ensure the government major, to limit the government deposits it without private banks, in addition to the failure to provide support and safeguards and security protection to domestic banks », without keep in mind that many bodies are working hard to not to break the state monopoly of its business activities in the field of foreign exchange bank and cover credits and foreign remittances. And generates the monopoly of government paralysis of the private banking sector, particularly since the law of private banks set by the central bank, which frames the activities of private banks banned and hedge under articles of the «27» until «32», which identified the activities and imposed numerous restrictions on investment, the result will be the role of the investment of these banks marginal and limited, and reverse the role of private banks on the exercise of traditional banking and very limited, and this is reflected later on the mechanisms of management of private economic activity as a whole.
The central bank had asked the private banks that do not usually have much access to the outside world to increase its capital to 250 billion dinars (214 million dollars) by 2013 in order to find banks more competitive, the private banks, in turn, is working actively to progress in an environment facing the security challenges and struggles towards the creation of new legal environment.
It should also be noted that it is possible to put additional shares of these banks, underwriting, and make way for the participation of shareholders foreigners in. This issue needs to be we can gain the confidence of foreign and trust the Iraqi capital outside the country so that it contributes to the growth of the banking sector.
note that foreign investors started to buy shares in banks in Iraq in anticipation of mergers, and actually entered into the market now, many foreign banks for by our banks, private and in my opinion, modest, it represents the first step of the trend towards the development of the performance of these banks and make a quantum leap in the level of performance and nature.
that the first rules of competition to contend that the banking units in the level and quality and the number of banking services provided in the market, or rather improve the degree of product banking and nature, and thus The climate of competition required capable of upgrading the performance and the product to serve the interest of the consumer first and to achieve an improvement in the performance of services and level of economic activity in the country in general.
The banking Iraq's long history in performance for the region and the world as a Rafidain Bank and Central Bank of Iraq since 1947, has been Iraq race to open up the banking and the branches of these international banks dealing with confidence and respect for mutual with those of Iraq, but the experience of nationalization surprise was subjected to these private banks in Iraq in 1964 had a strong impact and so far in cutting off relations of cooperation and joint action of the private banking sector, so The necessary step now is to restore confidence again to all parties concerned and involved in this sector in particular, and therefore activate the banking sector requires first believing in a real inevitability of the presence and contribution and participation of private sector economic activity in Iraq as well as providing climate of freedom and full competition, they will be no sector special: they can ensure that his economic and legal environment appropriate and sound and they will see a growth or even the presence of a productive private sector and influential, sound and healthy and productive actor is happening in his rates of economic growth steadily so as to enhance economic development in Iraq.
and banks round the core of the administration and facilitation of the joints of these economic processes all of it and have it better for leadership and take the lead in order to stabilize the pillars of the private sector and strengthening its presence, particularly through the sector is promising and active private banks, which believes the researcher - and humbly too - that there is no investment without it and without the role of Chairman of the banks which we hope to take a role in management of files, the economy and diagnosis of the exact files, investment and rebuild the Iraqi economy according to a new vision to see create a climate favorable for the transition from an environment-oriented economy central to the climate of the market economy to ensure that the recovery environment entry and growth of private sector's role in the Iraqi economy.
Iraq had announced earlier in the delay program to restructure the financial system of Iraq until the year 2013, which included the restructuring of the largest banks Iraqi owned by the state and are the Rafidain and Rasheed, and restructuring of the Audit Department at the Central Bank and the development of the private banking sector.
Officials said the financial sector of Iraq's restive was almost one of the barriers to economic growth They said there was still a need for security and macroeconomic stability.
and salt, but the question remains: Is there really such restructuring to serve the laws of economic development? ? ?
as the absence of general philosophy of the Department of State and the philosophy of economic impact on the planning strategy for a whole economy in Iraq, let alone side of banking,
but this view has many dimensions, I would like to note here that the Iraqi constitution referred to the strategic economic development in a number of articles, but unfortunately the trends and Alajdaloggiot for some political actors have made this strategy a strategy Off being not consistent with the orientations of these parties, and the political blocs that faced down the rule in Iraq did not have a philosophy and vision of economic well-defined and lacked economic programs truly their own, and this is reflected negatively on the justice economic development in Iraq, and the best proof of this is the imbalance evident in the adoption of the general budget of the country and the distribution of budgets to the ministries and state institutions, and in Iraq was far from the turmoil in the political process will impact heavily on the adoption of the general budget, which would disrupt the implementation of projects or to attract investment to the the country, and this indicates disregard for the clear concept of justice form public and economic justice in particular.
and the reality of the work of private banks, Iraqi special features have Atjdha in the countries of the world, that despite the support received by the sector to develop the apparatus Almusrviala it still suffers from not being able to live up to the performance of the banking industry in the developed world, even to the level of performance of banks in some countries Jawaralta Iraq was a major contributor to the development, as it touches the clear absence of strategies, policies and operational plans and the absence of prudential supervision of internal and external with the lack of full commitment to the rules and norms of banking work properly recognized internationally, according to the recommendations of the Basel Committee and then not being able to get the international classification is recognized.
also plays a factor poor banking culture big role in the banking community and ways of dealing which is reflected at the level of productivity of these banks, and led the absence of traditions of banking and non-compliance by a lack of empowerment Customers have access to their deposits and their exposure to insolvency in the implementation of their requirements Almokhtlfo and damage to their own interests, how much is the case in the banking Basra, Warka, and this requires decisive action by the supervisory authority and control over banks and hold negligent and away from the administration, and the payment of dues of depositors and secure the rights of shareholders, most especially the small investors.
to diagnose the problem requires a realistic vision requires a number of steps the executive task:
1 - Amending the Banking Act now, and the issuance of special laws commercial banks, investment banking, Islamic development, or amend current law to include the activity of all these banks.
2 - to cancel all decisions State government to prevent handle government departments and public sector organizations with private banks, and the treatment of all banks equal dealing.
3 - supporting and activating the private sector in all economic sectors.
4 - Activating the role of banking supervision and to work towards banking supervision prudential from within the bank and by the Supervisory Authority, according to international supervision standards approved by international institutions.
5 - the application of electronics, a central binding on all government and private banks.
6 - to encourage all banks to differ on the use of new technology in banking operations: the use of ATMs and debit cards, mail and create a commercial network based credit cards in buying and selling, and reduce the exchange banknotes along the lines of the countries of the world.
7 - to work on legislation to create a foundation to guarantee bank deposits and founder of the loan guarantee on a wide scale.
8 - curriculum development banking and financial establishments of scientific and academic.
9 - to raise awareness and culture necessary to bring about development in thought Serafi appropriate to adopt the process of development in all joints
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Posted 23/02/2012 07:37 PM
D. Peace Sumaisem *
Balance in the economy, the goal and the purpose sought by all significant than economists or policy makers or the men of politics and even researchers in the fields of science involved, and the only reminder we say that the economic balance includes several levels:
the balance in the market commodity and through the looking balance in production and consumption.
• balance in the financial markets are looking through investment and savings
• balance in the market for money through the relationship between money supply and demand
• balance in the labor market through the relationship between labor supply and demand for it
and then Atodh to balance the general economic and telescope macroeconomic policy Macro-Economic Policies
to be balanced on several axes, all of which combine to check later on the broader economic balance. This talk is in order to pick up the pieces, commenting on the suspension of the World Bank set out above, which cited the importance of public budgets and preparation area and create enough space and freedom of movement and requisite for the private sector in order to reach the goal of improving economic performance down to the goal of economic balance. Particular, and he stressed that this development should be in the non-oil sectors, with the focus on the oil sector in particular increases the rentier economy and its relation to this activity sector exclusively and make the Iraqi budget totally dependent on one source of funding and everyone knows what that impact on the economy and production processes Commodity of the Iraqi economy as well as the cash flow in Iraq. Hence the need to create opportunities for economic growth in other sectors to make the door open for the Iraqi economy to create a multiplicity of sources of funding for the Iraqi economy.
And banks round the core of the administration and facilitation of the joints of these economic processes are all but have it better for leadership and take the lead in order to stabilize the pillars of the private sector and strengthening its presence, particularly through the sector is promising and active private banks, which believes the researcher - and humbly too - that there is no investment without them and without the role of Chairman of the banks which we hope to take its role in the management of files, the economy and diagnosis of the exact files, investment and rebuild the Iraqi economy according to a new vision to see create a climate favorable for the transition from an environment-oriented economy central to the climate of the market economy to ensure that the recovery environment entry and growth of private sector's role in the economy Iraq.
based on the International Monetary Fund forecasts the GDP of Iraq will increase by 9.6 per cent this year and 12.6 per cent next year. In time will see many other nations in the Middle East and North Africa, a decline in economic growth rates in 2012 due to falling oil prices and global recession.
With the recent statements of officials in the international financial organizations on the reality and the future of the financial and banking sector in Iraq, following the interviews of some of those concerned in this regard with officials from the International Fund in Washington, escalated News existence of non-satisfaction of an international level of performance in the Iraqi market, financial and banking, including in particular,
is still typical Iraqi banking system hamper the growth prospects in Iraq, and here begins necessary to develop it in order to attract foreign investment and diversify the economy.
According to the latest report of the World Bank said seven state-owned banks dominate the banking system has 89 percent of bank deposits in the country through seven state banks still control the financial market in Iraq. Although these banks offer limited services and that most commercial banks in Iraq is still not working improper, but only work on commercial mediation, the most prominent car dealership and the conduct of currencies, especially selling the dollar against the Iraqi dinar!!!
. said Heidi Arpley Regional Director of the World Bank on the sidelines of the Fund IMF and World Bank in Washington «on Iraq as an economy that seems to Variety he had to provide jobs for millions of people. He also said that a country with huge potential and we need to help Iraq as a Tiger next in the region. »
said the World Bank »that the Iraqi government should order the balance sheets of banks and strengthen the supervision of the financial system and create conditions for competition from the private sector.
He said the bank «of to improve the balance of the economy there is a need to deepen the financial sector to support the growth of non-oil sector. »
Officials at the IMF and the World Bank that the financial sector of Iraq's restive was almost one of the barriers to economic growth, they said »that there is still a need for security and macroeconomic stability.
suffer fact Iraq's economic problems, several, and obstacles to banking, but most of these challenges impact and effect is the monopoly of government banks to work and banking activity to support and ensure the government major, to limit the government deposits it without private banks, in addition to the failure to provide support and safeguards and security protection to domestic banks », without keep in mind that many bodies are working hard to not to break the state monopoly of its business activities in the field of foreign exchange bank and cover credits and foreign remittances. And generates the monopoly of government paralysis of the private banking sector, particularly since the law of private banks set by the central bank, which frames the activities of private banks banned and hedge under articles of the «27» until «32», which identified the activities and imposed numerous restrictions on investment, the result will be the role of the investment of these banks marginal and limited, and reverse the role of private banks on the exercise of traditional banking and very limited, and this is reflected later on the mechanisms of management of private economic activity as a whole.
The central bank had asked the private banks that do not usually have much access to the outside world to increase its capital to 250 billion dinars (214 million dollars) by 2013 in order to find banks more competitive, the private banks, in turn, is working actively to progress in an environment facing the security challenges and struggles towards the creation of new legal environment.
It should also be noted that it is possible to put additional shares of these banks, underwriting, and make way for the participation of shareholders foreigners in. This issue needs to be we can gain the confidence of foreign and trust the Iraqi capital outside the country so that it contributes to the growth of the banking sector.
note that foreign investors started to buy shares in banks in Iraq in anticipation of mergers, and actually entered into the market now, many foreign banks for by our banks, private and in my opinion, modest, it represents the first step of the trend towards the development of the performance of these banks and make a quantum leap in the level of performance and nature.
that the first rules of competition to contend that the banking units in the level and quality and the number of banking services provided in the market, or rather improve the degree of product banking and nature, and thus The climate of competition required capable of upgrading the performance and the product to serve the interest of the consumer first and to achieve an improvement in the performance of services and level of economic activity in the country in general.
The banking Iraq's long history in performance for the region and the world as a Rafidain Bank and Central Bank of Iraq since 1947, has been Iraq race to open up the banking and the branches of these international banks dealing with confidence and respect for mutual with those of Iraq, but the experience of nationalization surprise was subjected to these private banks in Iraq in 1964 had a strong impact and so far in cutting off relations of cooperation and joint action of the private banking sector, so The necessary step now is to restore confidence again to all parties concerned and involved in this sector in particular, and therefore activate the banking sector requires first believing in a real inevitability of the presence and contribution and participation of private sector economic activity in Iraq as well as providing climate of freedom and full competition, they will be no sector special: they can ensure that his economic and legal environment appropriate and sound and they will see a growth or even the presence of a productive private sector and influential, sound and healthy and productive actor is happening in his rates of economic growth steadily so as to enhance economic development in Iraq.
and banks round the core of the administration and facilitation of the joints of these economic processes all of it and have it better for leadership and take the lead in order to stabilize the pillars of the private sector and strengthening its presence, particularly through the sector is promising and active private banks, which believes the researcher - and humbly too - that there is no investment without it and without the role of Chairman of the banks which we hope to take a role in management of files, the economy and diagnosis of the exact files, investment and rebuild the Iraqi economy according to a new vision to see create a climate favorable for the transition from an environment-oriented economy central to the climate of the market economy to ensure that the recovery environment entry and growth of private sector's role in the Iraqi economy.
Iraq had announced earlier in the delay program to restructure the financial system of Iraq until the year 2013, which included the restructuring of the largest banks Iraqi owned by the state and are the Rafidain and Rasheed, and restructuring of the Audit Department at the Central Bank and the development of the private banking sector.
Officials said the financial sector of Iraq's restive was almost one of the barriers to economic growth They said there was still a need for security and macroeconomic stability.
and salt, but the question remains: Is there really such restructuring to serve the laws of economic development? ? ?
as the absence of general philosophy of the Department of State and the philosophy of economic impact on the planning strategy for a whole economy in Iraq, let alone side of banking,
but this view has many dimensions, I would like to note here that the Iraqi constitution referred to the strategic economic development in a number of articles, but unfortunately the trends and Alajdaloggiot for some political actors have made this strategy a strategy Off being not consistent with the orientations of these parties, and the political blocs that faced down the rule in Iraq did not have a philosophy and vision of economic well-defined and lacked economic programs truly their own, and this is reflected negatively on the justice economic development in Iraq, and the best proof of this is the imbalance evident in the adoption of the general budget of the country and the distribution of budgets to the ministries and state institutions, and in Iraq was far from the turmoil in the political process will impact heavily on the adoption of the general budget, which would disrupt the implementation of projects or to attract investment to the the country, and this indicates disregard for the clear concept of justice form public and economic justice in particular.
and the reality of the work of private banks, Iraqi special features have Atjdha in the countries of the world, that despite the support received by the sector to develop the apparatus Almusrviala it still suffers from not being able to live up to the performance of the banking industry in the developed world, even to the level of performance of banks in some countries Jawaralta Iraq was a major contributor to the development, as it touches the clear absence of strategies, policies and operational plans and the absence of prudential supervision of internal and external with the lack of full commitment to the rules and norms of banking work properly recognized internationally, according to the recommendations of the Basel Committee and then not being able to get the international classification is recognized.
also plays a factor poor banking culture big role in the banking community and ways of dealing which is reflected at the level of productivity of these banks, and led the absence of traditions of banking and non-compliance by a lack of empowerment Customers have access to their deposits and their exposure to insolvency in the implementation of their requirements Almokhtlfo and damage to their own interests, how much is the case in the banking Basra, Warka, and this requires decisive action by the supervisory authority and control over banks and hold negligent and away from the administration, and the payment of dues of depositors and secure the rights of shareholders, most especially the small investors.
to diagnose the problem requires a realistic vision requires a number of steps the executive task:
1 - Amending the Banking Act now, and the issuance of special laws commercial banks, investment banking, Islamic development, or amend current law to include the activity of all these banks.
2 - to cancel all decisions State government to prevent handle government departments and public sector organizations with private banks, and the treatment of all banks equal dealing.
3 - supporting and activating the private sector in all economic sectors.
4 - Activating the role of banking supervision and to work towards banking supervision prudential from within the bank and by the Supervisory Authority, according to international supervision standards approved by international institutions.
5 - the application of electronics, a central binding on all government and private banks.
6 - to encourage all banks to differ on the use of new technology in banking operations: the use of ATMs and debit cards, mail and create a commercial network based credit cards in buying and selling, and reduce the exchange banknotes along the lines of the countries of the world.
7 - to work on legislation to create a foundation to guarantee bank deposits and founder of the loan guarantee on a wide scale.
8 - curriculum development banking and financial establishments of scientific and academic.
9 - to raise awareness and culture necessary to bring about development in thought Serafi appropriate to adopt the process of development in all joints
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